Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 8, Problem 7QP
To determine
Explain the import and export if dollar
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Chapter 8 Solutions
Macroeconomics
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - Prob. 3STCh. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QP
Ch. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 20QPCh. 8 - Prob. 21QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNG
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- When there is a change in price level that affects the total net exports, that is called Real money effect wealth effect ON balance of payment effect crowding out effectarrow_forwardIf countries that imported from the United States went into recession, we expect that U.S. net exports would _________ rise, making the aggregate demand shift right. rise, making aggregate supply shift left. fall, making aggregate supply shift right. fall, making aggregate demand shift left.arrow_forwardConsider the shift drawn in Graph B. In this graph: EHIF) EHIF) ERROM LY) ERRIM) ERR(F) MP ERR ERR(F) t LY) ERR MP E(H/F) EH/F) ERRH) LY) ERRH) B ERRIF) Mu D ERR ERRF) # Mu LI ERR The Home currency will depreciate and the Foreign currency will depreciate. The Home currency will appreciate and the Foreign currency will depreciate. The Home currency will appreciate and the Foreign currency will appreciate. The Home currency will depreciate and the Foreign currency will appreciate.arrow_forward
- If the value of the dollar appreciates in value relative to other currencies, this means the dollar becomes "stronger", how are the following groups affected. Please explain your answers. US Importers, hurt or helped? US Exporters, hurt or helped? Will this strengthening of the dollar cause GDP to increase or decrease?arrow_forwardIn your macroeconomic lectures you are often told that exchange rates and interest rates are important for macroeconomic decision-making. How does an increase in Japan’s government budget deficit affect each of the following? The real interest rate in the short run in Japan. Explain. Private domestic investment in plant and equipment in Japan. Draw a correctly labeled graph of the foreign exchange market for the euro, and show the effect of the change in the real interest rate in Japan from part (a)(i) on each of the following. Supply of euros. Explain. Yen price of the euro To reverse the change in the yen price of the euro identified in part (b) (ii), should the European Central Bank buy or sell euros in the foreign exchang market? Explain.arrow_forwardImagine that in 2050, the dollar depreciates greatly against the euro. Use the ADAS model to explain the likely short run impacts on U.S. GDP and the aggregate price level. What do you anticipate to happen to U.S. consumption expenditures and U.S. employment? Explain your reasoning for each of your predictions and show graphically as appropriate.arrow_forward
- One of the reasons given for the downward sloping aggregate demand curve is the foreign price effect. Clearly explain, step by step, how an increase in the price level will lead to a decrease in the aggregate demand, indicating a downward sloping aggregate demand curve.arrow_forwardEverything else held constant, a decrease in net exports ______aggregate ________. OPTIONS: Increases; supply Decreases; demand Decreases; supply Increases; demandarrow_forwardIf Australia, which imports goods from the United States, went into recession, we should expect that U.S. net exports would fall, making the aggregate demand shift right. fall, making the aggregate demand shift left. rise, making the aggregate demand shift right. rise, making the aggregate demand shift left.arrow_forward
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